When Andreessen Horowitz partner Angela Strange famously declared in 2019 that “every company will be a fintech company,” the vision was clear.
Trust defines success
The vision was simple – businesses across all industries would embed financial services into their offerings to deepen customer relationships and unlock new revenue streams.
Fast forward to 2025, and while the idea of embedded finance has gained traction, the path to scale has been more turbulent than originally imagined.
Finance Embedded
Embedded finance – where non-financial brands integrate payments, lending, insurance, or savings products directly into their platforms – was initially characterised by speed and innovation.
Fintechs were quick to seize the opportunity, building lightweight infrastructure to help brands go to market fast.
However, this haste often came at the expense of operational resilience and regulatory compliance.
Nowhere was this more apparent than in the Buy Now, Pay Later (BNPL) boom, which, despite surging consumer adoption, raised serious concerns around affordability, oversight, and consumer outcomes.
As the sector matures, the narrative is shifting – it is no longer simply about launching fast. It’s about scaling sustainably.
This means putting trust at the centre of the business model – trust in the brand offering the financial service, and trust in the provider behind the scenes.
Trust Imperative
Recent research shows that 57% of consumer brands would prefer to promote their embedded finance partner as a trusted name.
This marks a turning point.
It is no longer a question of whether to invest in embedded finance, but how and with whom to do so.
Fintechs remain vital to the embedded finance ecosystem, particularly for their technological agility.
But as deployment becomes more complex and regulatory scrutiny intensifies, banks are emerging as crucial partners.
Banks??
Equipped with robust governance frameworks, seasoned compliance teams, operational infrastructure, and strong capital positions, banks are increasingly well-placed to support embedded finance at scale.
This evolution is illustrated by initiatives such as NatWest Boxed’s partnership with The AA – one of the UK’s largest embedded finance programmes to date.
By combining the reach of a consumer-facing brand with the resilience of a regulated financial institution, such collaborations provide a blueprint for the future of embedded financial services.
Indeed, while not every company may become a fintech company in the strictest sense, it is increasingly clear that every successful embedded finance initiative will require a bank—or a banking partner—behind it.
Trust is not simply a desirable attribute; it is the foundation upon which long-term value in embedded finance will be built.
The next phase
The next phase of embedded finance will prioritise sustainability over experimentation.
Brands seeking to monetise financial services must consider not only the user experience and commercial potential, but also the reliability and regulatory soundness of their partners.
As embedded finance continues to evolve, the winners will be those who combine digital innovation with institutional credibility.
Ultimately, embedded finance is not a passing trend.
It is a structural shift in how financial products are distributed.
But without the infrastructure and oversight that banks can provide, the model risks underdelivering on its promise.
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